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A. A fixed asset is classified as 5-year MACRS property and has an initial cost of $41,000 What is the aftertax cash flow from the
A.
A fixed asset is classified as 5-year MACRS property and has an initial cost of $41,000 What is the aftertax cash flow from the sale of this asset if the pre-tax salvage value at the end of year 3 is $17,500 and the tax rate is 34 percent? |
Year | Five-Year Property Class | |
1 | 20.00 | % |
2 | 32.00 | |
3 | 19.20 | |
4 | 11.52 | |
5 | 11.52 | |
6 | 5.76 | |
$15,439.38
$15,558.04
$15,564.72
$15,463.06
B.
A firm has sales for the year of $95,500, costs of $48,500, and taxes of $19,000. What is the operating cash flow for the year? |
$21,000
Answer cannot be determined from the information provided.
$28,000
$32,000
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